"CFA's comprehensive, fact-based analysis stands in stark contrast to the error and bluster we've seen from the Phoenix Center and ITIF," Dr.
CFA's latest report was filed as an ex parte supplement to the record in several ongoing
"Utilizing data from the
The report, entitled Abuse of
The Phoenix Center:
By using an erroneous number from a
"CFA's earlier analysis had put the figure for excessive cash flow for the previous five years at
To evaluate broadband products and prices from the consumer point of view, CFA analyzed the product attributes that are important to consumers as reported in a global survey of rates, terms and conditions for wireline and wireless broadband serviced conducted by NAF.
* In its initial study, NAF examined six service characteristics that define the consumer experience: monthly bills, cost per megabit, download speed, upload speed, presence of a data cap, and type of data cap.
* In all analyses CFA/NAF controlled for a basic set of factors including: service type (e.g. broadband only, triple play, wireless), population density of the municipality, number of competitors, and nature of competitors (municipals,
* For cross-national comparisons, in addition to the above variables, CFA/NAF also controlled for the following: national income per capita, level of wireline or wireless broadband penetration, and national population densities.
Today's CFA filing also rebuts a critique leveled by ITIF of CFA's previous analysis. "ITIF completely ignores the careful definition of variables and econometric analysis we utilized," Cooper said. "They assert incorrectly that differences we observe in pricing and product traits can be explained by omitted variables. Since we included the important variables, this is a glaring error; they cannot explain the outcome."
"The claim that the underlying NAF data is biased is also refuted by a recent survey from
"The evidence overwhelmingly points to the existence and abuse of market power in the U.S. wireline and wireless broadband markets," Cooper concluded. "Stale theory and bad analysis can't hide facts. If this is a teachable moment, then there are two lessons to be learned."
"First, with respect to process, the Phoenix Center and ITIF have to learn that there are too many serious researchers working on these important issues to get away with incanting myopic theory, fudging the data or regurgitating stale empirical arguments that have been thoroughly refuted."
"Second and even more importantly, with respect to substance, the
Links to the CFA analysis filed at the
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